EU Governments Advance Trade Deal Legislation with US

Kathmandu. The governments of the European Union (EU) member states have decided to advance the necessary legislation to implement the trade agreement reached with the United States.

This step is expected to help prevent US President Donald Trump's threat to impose high tariffs on cars and other goods coming from the EU to the US.

This agreement is based on the preliminary framework formed during talks held last year at the Turnberry golf resort in Scotland. According to the agreement, the EU will remove import duties on American industrial goods and provide easier access for agricultural and marine products. In return, the US has agreed to maintain a 15 percent tariff on most European goods.

However, the European Parliament still needs to give final approval to this bill. The Trade Committee is expected to hold an initial vote next week, and the full parliament is expected to make a decision in mid-June. The agreement also includes some safeguards. There is a provision that the European Commission can suspend parts of the agreement if the US does not implement or re-increases the agreed 15 percent tariff.

This includes a commitment from the US to reduce the current 25 percent tariff on products widely used domestically, including washing machines, wind turbines, and steel-aluminum. Additionally, the agreement has a provision for its expiry at the end of 2029, which keeps the door open for future policy reviews.